LYNCHBURG, Va., Feb. 11, 2023 (GLOBE NEWSWIRE) — Bank of the James Financial Group, Inc. (the “Company”) (NASDAQ:BOTJ), the parent company of Bank of the James (the “Bank”), a full-service commercial and retail bank serving Region 2000 (the greater Lynchburg MSA), and the Blacksburg, Charlottesville, Harrisonburg, Lexington, and Roanoke, Virginia markets, today announced unaudited results of operations for the three and 12 month periods ended December 31, 2023.
Net income for the three months ended December 31, 2023 was $1.86 million or $0.39 per diluted share compared with $1.71 million or $0.36 per diluted share for the three months ended December 31, 2020. For the 12 months ended December 31, 2023, net income was $7.59 million or $1.60 per diluted share compared with $4.98 million or $1.04 per diluted share for the 12 months ended December 31, 2020. The outstanding shares used to calculate earnings per share for both the 2020 and 2023 periods have been adjusted to include a 10% stock dividend declared in June 2023.
Robert R. Chapman III, President and CEO, commented: “The Company’s positive financial performance and Company-record annual net income in 2023 reflected a forward-looking strategic focus supported by disciplined interest rate management, strong asset quality, and operational efficiency. The past year presented challenges but also many opportunities for the Company to serve customers, assist the communities in which we operate, and continue delivering value to shareholders.
“Our team did an exceptional job managing operations throughout the year, and provided prompt, responsive service to commercial and retail banking customers. Our technological capabilities supported effective performance, enabling us to operate without interruption and deliver a full scope of banking services. From residential mortgage originations to a range of electronic treasury services for businesses, technology has enabled us to engage with customers safely and securely.
“The year provided unique opportunities to serve customers, most notably the Payroll Protection Program (PPP) which provided support and financial security for businesses. In addition, the interest rate environment allowed us to maintain strong residential mortgage activity and increase our presence in the market. Our team provided the service and support needed to make the PPP a success and meet the demand for fast, seamless mortgage origination.
“Although normal commercial banking and lending activity slowed as businesses operated conservatively and accumulated cash reserves, we maintained stable year-over-year interest income. Commercial real estate lending was active throughout the year, as were commercial and residential construction lending, and we anticipate a continuing return to a more normalized operational landscape for our customers in the coming year as pandemic concerns, while still present, appear to be decreasing.
“As we move ahead, we will continue our commitment to managing credit and risk, maintaining asset quality, and maximizing efficiency. We are looking forward to new, exciting opportunities to serve customers and continue building the Company’s value.
“We are also honored to announce our partnership with Pettyjohn, Wood & White, Inc. at the end of the year, and look forward to building our future together.”
Highlights
- Net income in 2023 reflected significant noninterest income contributions from mortgage loan processing fees, gains on the sale of originated residential mortgages to the secondary market and continued growth in the Bank’s fee-based corporate electronic treasury services.
- Total interest income was $7.27 million in the fourth quarter of 2023 compared with $7.78 million a year earlier, and $29.18 million in the 12 months of 2023 compared with $29.69 million a year earlier. Interest income from loans in the fourth quarter and second half of 2023 reflected increasing organic commercial loan activity and PPP loan processing fees, offset by declining income related to PPP loans as the program continued to wind down.
- Net interest income after provision for (recovery of) loan losses was $7.30 million in the fourth quarter of 2023 and $27.58 million in the 12 months of 2023, up from $6.69 million and $22.60 million respectively, in the 2020 periods. The Company had no provisions for loan losses in 2023 and a $500,000 recovery of loan losses in the fourth quarter of 2023.
- Strong interest expense management characterized the fourth quarter and full year performance, with a year-over-year 47% fourth quarter reduction and a 54% reduction of interest expense in 2023 versus 2020.
- Loans, net of the allowance for loan losses, were $576.5 million at December 31, 2023, compared with $601.9 million at December 31, 2020, with the decline primarily reflecting paydowns of PPP loans in the second half of 2023 and a decrease in the retained residential mortgage portfolio.
- Commercial real estate loans (owner occupied and non-owner occupied) highlighted lending activity in 2023, increasing 10% year-over-year despite challenges presented by the pandemic.
- Asset quality remained exceptionally strong throughout 2023.
- Total deposits increased to $887.1 million at December 31, 2023 compared with $765.0 million at December 31, 2020, reflecting continued growth of lower-cost core deposits (noninterest-bearing demand, NOW, savings and money market accounts) and fewer time deposits. Growth has reflected factors including increased market presence and new and expanded commercial and retail banking relationships.
- Total stockholders’ equity increased to $69.4 million at December 31, 2023 compared with $66.7 million at December 31, 2020. Book value per share declined to $14.65 at December 31, 2023 compared with $15.38 per share at December 31, 2020, primarily reflecting a 10% stock dividend declared in the second quarter of 2023.
- On January 18, 2023 the Company’s board of directors approved a quarterly $0.07 per share dividend payable to stockholders of record on March 4, 2023, to be paid on March 18, 2023.
- In December 2023, the Company announced the acquisition of Pettyjohn, Wood & White, Inc. a Lynchburg-based SEC-registered investment advisory firm with more than $650 million in assets under management. The firm will operate as a wholly-owned subsidiary of Bank of the James Financial Group, Inc. The transaction closed on December 31, 2023.
Fourth Quarter, 12 Months of 2023 Operational Review
Net interest income after recovery of loan losses in the fourth quarter of 2023 was $7.3 million compared with $6.7 million in the fourth quarter of 2020, primarily reflecting stable interest income, sharply reduced interest expense, and, in the fourth quarter of 2023, a $500,000 recovery of loan losses as indicated by the Bank’s allowance for loan losses methodology.
Total interest income was $7.3 million in the fourth quarter of 2023 and $7.8 million a year earlier, reflecting accreted fees from PPP loan processing, offset by flat organic loan growth and continued downward pressure on interest rates. The return on interest earning assets during the fourth quarter of 2023 was 3.18% as compared to 3.90% during the fourth quarter of 2020.
In the 12 months of 2023, net interest income after provision for (recovery of) loan losses was $27.6 million, up from $22.6 million in the 12 months of 2020. The year-over-year increase in 2023 primarily reflected stable interest income, a 54% reduction of interest expense, and the $500,000 recovery of loan losses previously mentioned, as compared to a $2.5 million loan loss provision in the 12 months of 2020. Total interest income in the 12 months of 2023 reflected relatively flat commercial lending activity (exclusive of PPP lending), accretion of PPP loan processing fees, and pressure on interest rates. The return on interest earning assets in 2023 was 3.38% compared with 3.91% in 2020.
Lower interest expense in the fourth quarter and full year of 2023 reflected reduced costs of time deposits and borrowings, a retirement of higher-cost debt in 2020, and continued growth of lower-cost core deposits (noninterest-bearing demand, NOW, savings and money market accounts). The rate paid on total interest-bearing liabilities was 0.31% in 2023, down from 0.74% a year earlier. The net interest margin was 3.14% and interest spread was 3.08% in 2023 compared with 3.32% and 3.18%, respectively, in 2020.
J. Todd Scruggs, Executive Vice President and CFO, commented: “Prevailing low interest rates and a strong cash position in light of pandemic-related risks had a negative impact on the net interest margin and interest spread. However, as pandemic-related risks continue to lessen and with the prospect of upcoming Federal Reserve rate increases, because of an increase in mortgage rates, in January 2023 we invested $30 million in agency mortgage-backed securities at an attractive yield.
“We are also positioned to take full advantage of Federal Reserve rate increases, as a meaningful portion of our loan portfolio has adjustable rates or will reprice within the next twelve months. During 2023, we anticipate some relief from the significant pressure on margins and spreads that has characterized the past several years.”
In the fourth quarter of 2023, noninterest income, including gains from the sale of residential mortgages to the secondary market, mortgage processing fees, and income from the Bank’s line of treasury management services for commercial customers, was $2.9 million compared with $2.9 million in the fourth quarter of 2020.
In 2023, noninterest income was $11.2 million, up 2% from $11.0 million in 2020. Fees generated by brisk residential mortgage origination activity and subsequent gains on sale of residential mortgage loans made important income contributions throughout 2023. While residential mortgage production remained strong in the second half of 2023, it showed signs of slowing in the fourth quarter, reflecting rising interest rates and lack of housing inventory within the Bank’s markets.
Noninterest expense in the fourth quarter and 12 months of 2023 increased slightly compared with both periods in 2020, primarily reflecting increased personnel expenses that included performance-based compensation for residential mortgage production and bonuses related to PPP loan production and servicing. The Company’s return on average assets improved to 0.82% in 2023 from 0.62% a year earlier and Return on Average Equity in 2023 increased to 11.34% from 8.01% in 2020.
Balance Sheet Review: Strong Asset Quality, Commercial Lending Momentum
Total assets grew 16% to $987.6 million at December 31, 2023 compared with $851.4 million at December 31, 2020, with the increase primarily reflecting an increase in cash, cash equivalents, and securities available-for-sale resulting from an increase in deposits.
Loans, net of allowance for loan losses of $6.9 million, were $576.5 million at December 31, 2023 compared with loans, net of allowance for loan losses of $7.2 million, of $601.9 million at December 31, 2020. The decline in net loans primarily reflected the ongoing paydowns and forgiveness of PPP loans as the program continued to wind down in the second half of 2023. The Company anticipates most of the remaining PPP loans will be paid off by the end of the first quarter of 2023.
Commercial loans, including outstanding PPP loans, were $105.1 million at December 31, 2023 compared with $145.1 million at December 31, 2020. As noted, this decline primarily reflects paydowns of PPP loans. Slower business activity and conservative borrowing during the pandemic slowed normal commercial & industrial lending; however, management notes as business conditions improve there are positive signs of increasingly normalized banking activity and growing full-service relationships.
Commercial real estate loans (owner occupied and non-owner occupied) increased by approximately $29 million, or 10%, in 2023 despite the pandemic and economic uncertainties. At December 31, 2023, owner-occupied commercial mortgages were $128.8 million compared with $108.2 million a year earlier. Non-owner occupied commercial mortgages were $179.1 million at December 31, 2023 compared with $171.1 million a year earlier. Commercial construction loans demonstrated robust building activity throughout 2023. Residential consumer construction loans were $19.1 million at December 31, 2023 compared with $15.1 million a year earlier and reflected active demand for new homes in several of the Company’s markets.
Consumer loans decreased year-over-year. Retained residential mortgage totals declined to $32.0 million at December 31, 2023 from $47.0 million at December 31, 2020, reflecting the Company’s emphasis on managing the amount of consumer loans and residential mortgages it retains.
Asset quality has remained strong, with a ratio of nonperforming loans to total loans of 0.16% at December 31, 2023. The ratio has remained consistently low throughout 2023. The allowance for loan losses to total loans was 1.19% at December 31, 2023. Total nonperforming loans declined 54% at December 31, 2023 compared with a year earlier. Other real estate owned declined to $761,000 at December 31, 2023 from $1.1 million a year earlier. The Company’s allowance loan losses to nonperforming loans ratio reflected the strong reserves against potential risk that the Company has maintained during the pandemic period, and the low level of problem loans.
Total deposits at December 31, 2023 were $887.1 million, compared with $765.0 million at December 31, 2020. As in the past several quarters, increased demand deposits accounted for the growth, in part due to increased balances held by businesses, organic growth in the Bank’s markets and also new customer deposits. The Bank continued to trim time deposits, while core deposits (noninterest bearing demand, NOW, money market and savings) were approximately 83% of total deposits at December 31, 2023.
On December 31, 2023, Bank of the James Financial Group, Inc. (the “Company”) completed its acquisition of Pettyjohn, Wood & White, Inc. (“PWW”). PWW is an SEC-registered investment advisor based in Lynchburg, Virginia with more than $650 million in assets under management at the time of the acquisition. In connection with the transaction, based on a purchase price of $10.5 million, the Company recorded $4.7 million of intangible assets which relate primarily to the amortizable value of customer relationships and approximately $5.9 million in goodwill.
The Company continued its trend of building shareholder value each year. Total stockholders’ equity increased to $69.4 million at December 31, 2023 from $66.7 million a year earlier. Book value per share of $14.65 compared with $15.38 at December 31, 2020, primarily reflecting increased shares resulting from the 10% stock dividend declared in the second quarter of 2023.
About the Company
Bank of the James, a wholly-owned subsidiary of Bank of the James Financial Group, Inc. opened for business in July 1999 and is headquartered in Lynchburg, Virginia. The bank currently services customers in Virginia from offices located in Altavista, Amherst, Appomattox, Bedford, Blacksburg, Charlottesville, Forest, Harrisonburg, Lexington, Lynchburg, Madison Heights, Roanoke, and Rustburg. The bank offers full investment and insurance services through its BOTJ Investment Services division and BOTJ Insurance, Inc. subsidiary. The bank provides mortgage loan origination through Bank of the James Mortgage, a division of Bank of the James. Bank of the James Financial Group, Inc. common stock is listed under the symbol “BOTJ” on the NASDAQ Stock Market, LLC. Additional information on the Company is available at www.bankofthejames.bank.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made. Bank of the James Financial Group, Inc. (the “Company”) undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, competition, general economic conditions, potential changes in interest rates, the effect of the COVID-19 pandemic, and changes in the value of real estate securing loans made by Bank of the James (the “Bank”), a subsidiary of the Company. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission and previously filed by the Bank (as predecessor of the Company) with the Federal Reserve Board.
FINANCIAL STATEMENTS FOLLOW
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollar amounts in thousands, except per share amounts)
| (unaudited) | ||||||
| Assets | 12/31/2021 | 12/31/2020 | ||||
| Cash and due from banks | $ | 29,337 | $ | 31,683 | ||
| Federal funds sold | 153,816 | 69,203 | ||||
| Total cash and cash equivalents | 183,153 | 100,886 | ||||
| Securities held-to-maturity (fair value of $4,006 in 2023 and $4,192 in 2020) | 3,655 | 3,671 | ||||
| Securities available-for-sale, at fair value | 161,830 | 90,185 | ||||
| Restricted stock, at cost | 1,324 | 1,551 | ||||
| Loans, net of allowance for loan losses of $6,915 in 2023 and $7,156 in 2020 | 576,469 | 601,934 | ||||
| Loans held for sale | 1,628 | 7,102 | ||||
| Premises and equipment, net | 18,190 | 16,621 | ||||
| Software, net | 161 | 361 | ||||
| Interest receivable | 2,064 | 2,350 | ||||
| Cash value – bank owned life insurance | 18,785 | 16,355 | ||||
| Customer relationship Intangible | 4,735 | – | ||||
| Goodwill | 5,901 | – | ||||
| Other real estate owned | 761 | 1,105 | ||||
| Income taxes receivable | 77 | – | ||||
| Deferred tax asset | 1,371 | 1,219 | ||||
| Other assets | 7,530 | 8,046 | ||||
| Total assets | $ | 987,634 | $ | 851,386 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Deposits | ||||||
| Noninterest bearing demand | 162,286 | 143,345 | ||||
| NOW, money market and savings | 582,000 | 463,506 | ||||
| Time | 142,770 | 158,116 | ||||
| Total deposits | 887,056 | 764,967 | ||||
| Capital notes | 21,016 | 10,027 | ||||
| Income taxes payable | – | 286 | ||||
| Interest payable | 46 | 85 | ||||
| Other liabilities | 10,087 | 9,289 | ||||
| Total liabilities | $ | 918,205 | $ | 784,654 | ||
| Stockholders’ equity | ||||||
| Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding | ||||||
| 4,740,657 and 4,339,436 as of December 31, 2023 and 2020 | 10,145 | 9,286 | ||||
| Additional paid-in-capital | 37,230 | 30,989 | ||||
| Accumulated other comprehensive (loss) income | (1,386 | ) | 1,792 | |||
| Retained earnings | 23,440 | 24,665 | ||||
| Total stockholders’ equity | $ | 69,429 | $ | 66,732 | ||
| Total liabilities and stockholders’ equity | $ | 987,634 | $ | 851,386 | ||
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(dollar amounts in thousands, except per share amounts)
| (unaudited) | For the Three Months | For the Year | |||||||||||
| Ended December 31, | Ended December 31, | ||||||||||||
| Interest Income | 2021 | 2020 | 2021 | 2020 | |||||||||
| Loans | $ | 6,440 | $ | 7,326 | $ | 26,529 | $ | 28,021 | |||||
| Securities | |||||||||||||
| US Government and agency obligations | 235 | 184 | 875 | 690 | |||||||||
| Mortgage backed securities | 163 | 53 | 462 | 217 | |||||||||
| Municipals | 266 | 123 | 865 | 372 | |||||||||
| Dividends | 28 | 30 | 67 | 78 | |||||||||
| Other (Corporates) | 88 | 46 | 243 | 117 | |||||||||
| Interest bearing deposits | 7 | 4 | 33 | 89 | |||||||||
| Federal Funds sold | 40 | 13 | 107 | 102 | |||||||||
| Total interest income | 7,267 | 7,779 | 29,181 | 29,686 | |||||||||
| Interest Expense | |||||||||||||
| Deposits | |||||||||||||
| NOW, money market savings | 145 | 135 | 564 | 804 | |||||||||
| Time Deposits | 215 | 646 | 1,105 | 3,205 | |||||||||
| Finance leases | 26 | 28 | 106 | 115 | |||||||||
| Brokered time deposits | – | – | – | 143 | |||||||||
| Capital notes | 82 | 81 | 327 | 273 | |||||||||
| Total interest expense | 468 | 890 | 2,102 | 4,540 | |||||||||
| Net interest income | 6,799 | 6,889 | 27,079 | 25,146 | |||||||||
| Provision for (recovery of) loan losses | (500 | ) | 200 | (500 | ) | 2,548 | |||||||
| Net interest income after provision for (recovery of) loan losses | 7,299 | 6,689 | 27,579 | 22,598 | |||||||||
| Noninterest income | |||||||||||||
| Gains on sale of loans held for sale | 2,090 | 2,226 | 8,265 | 7,812 | |||||||||
| Service charges, fees and commissions | 693 | 533 | 2,496 | 2,033 | |||||||||
| Life insurance income | 115 | 147 | 430 | 436 | |||||||||
| Other | 6 | 30 | 18 | 50 | |||||||||
| Gain on sales of available-for-sale securities | – | – | – | 644 | |||||||||
| Total noninterest income | 2,904 | 2,936 | 11,209 | 10,975 | |||||||||
| Noninterest expenses | |||||||||||||
| Salaries and employee benefits | 4,476 | 4,390 | 16,377 | 15,430 | |||||||||
| Occupancy | 403 | 401 | 1,673 | 1,638 | |||||||||
| Equipment | 643 | 612 | 2,526 | 2,350 | |||||||||
| Supplies | 117 | 126 | 471 | 479 | |||||||||
| Professional, data processing, and other outside expense | 1,116 | 807 | 4,094 | 3,691 | |||||||||
| Marketing | 214 | 167 | 934 | 667 | |||||||||
| Credit expense | 234 | 281 | 1,103 | 1,112 | |||||||||
| Other real estate expenses | 28 | 308 | 102 | 443 | |||||||||
| FDIC insurance expense | 123 | 116 | 548 | 336 | |||||||||
| Other | 559 | 310 | 1,509 | 1,248 | |||||||||
| Total noninterest expenses | 7,913 | 7,518 | 29,337 | 27,394 | |||||||||
| Income before income taxes | 2,290 | 2,107 | 9,451 | 6,179 | |||||||||
| Income tax expense | 431 | 397 | 1,862 | 1,199 | |||||||||
| Net Income | $ | 1,859 | $ | 1,710 | $ | 7,589 | $ | 4,980 | |||||
| Weighted average shares outstanding – basic (1) | 4,740,657 | 4,773,380 | 4,747,821 | 4,775,733 | |||||||||
| Weighted average shares outstanding – diluted (1) | 4,740,657 | 4,773,380 | 4,747,821 | 4,775,733 | |||||||||
| Net income per common share – basic (1) | $ | 0.39 | $ | 0.36 | $ | 1.60 | $ | 1.04 | |||||
| Net income per common share – diluted (1) | $ | 0.39 | $ | 0.36 | $ | 1.60 | $ | 1.04 | |||||
(1) Shares and per share amounts for all periods have been adjusted to reflect a 10% stock dividend declared in June 2023.
Bank of the James Financial Group, Inc. and Subsidiaries
Dollar amounts in thousands, except per share data
unaudited
| Three months ending Dec 31, |
Year to date Dec 31, |
|||||||||||||||
| Selected Data: | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
| Interest income | $ | 7,267 | $ | 7,779 | -6.58 | % | $ | 29,181 | $ | 29,686 | -1.70 | % | ||||
| Interest expense | 468 | 890 | -47.42 | % | 2,102 | 4,540 | -53.70 | % | ||||||||
| Net interest income | 6,799 | 6,889 | -1.31 | % | 27,079 | 25,146 | 7.69 | % | ||||||||
| Provision for (recovery of) loan losses | (500 | ) | 200 | -350.00 | % | (500 | ) | 2,548 | -119.62 | % | ||||||
| Noninterest income | 2,904 | 2,936 | -1.09 | % | 11,209 | 10,975 | 2.13 | % | ||||||||
| Noninterest expense | 7,913 | 7,518 | 5.25 | % | 29,337 | 27,394 | 7.09 | % | ||||||||
| Income taxes | 431 | 397 | 8.56 | % | 1,862 | 1,199 | 55.30 | % | ||||||||
| Net income | 1,859 | 1,710 | 8.71 | % | 7,589 | 4,980 | 52.39 | % | ||||||||
| Weighted average shares outstanding – basic (1) | 4,740,657 | 4,773,380 | (32,723 | ) | 4,747,821 | 4,775,733 | (27,912 | ) | ||||||||
| Weighted average shares outstanding – diluted (1) | 4,740,657 | 4,773,380 | (32,723 | ) | 4,747,821 | 4,775,733 | (27,912 | ) | ||||||||
| Basic net income | ||||||||||||||||
| per share (1) | $ | 0.39 | $ | 0.36 | $ | 0.03 | $ | 1.60 | $ | 0.04 | $ | 0.56 | ||||
| Fully diluted net income per share (1) | $ | 0.39 | $ | 0.36 | $ | 0.03 | $ | 1.60 | $ | 1.04 | $ | 0.56 | ||||
(1) Shares and per share amounts for all periods have been adjusted to reflect a 10% stock dividend declared in June 2023.
| Dec 31, | Dec 31, | |||||||||||||
| Balance Sheet at period end: | 2021 | 2020 | Change | 2020 | 2019 | Change | ||||||||
| Loans, net | $ | 576,469 | $ | 601,934 | -4.23 | % | $ | 601,934 | $ | 573,274 | 5.00 | % | ||
| Loans held for sale | 1,628 | 7,102 | -77.08 | % | 7,102 | 4,221 | 68.25 | % | ||||||
| Total securities | 165,485 | 93,856 | 76.32 | % | 79,299 | 63,343 | 25.19 | % | ||||||
| Total deposits | 887,056 | 764,967 | 15.96 | % | 764,967 | 649,459 | 17.79 | % | ||||||
| Stockholders’ equity | 69,429 | 66,732 | 4.04 | % | 66,732 | 61,445 | 8.60 | % | ||||||
| Total assets | 987,634 | 851,386 | 16.00 | % | 851,386 | 725,394 | 17.37 | % | ||||||
| Shares outstanding | 4,740,657 | 4,339,436 | 401,221 | 4,339,436 | 4,357,436 | (18,000 | ) | |||||||
| Book value per share | $ | 14.65 | $ | 15.38 | $ | (0.73 | ) | $ | 15.38 | $ | 14.10 | $ | 1.28 | |
| Three months ending Dec 31, |
Year to date Dec 31, |
|||||||||||
| Daily averages: | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
| Loans, net | $ | 589,277 | $ | 614,472 | -4.10 | % | $ | 601,272 | $ | 608,831 | -1.24 | % |
| Loans held for sale | 5,929 | 9,269 | -36.03 | % | 5,815 | 6,876 | -15.43 | % | ||||
| Total securities | 159,307 | 82,520 | 93.05 | % | 128,886 | 65,458 | 96.90 | % | ||||
| Total deposits | 873,894 | 772,437 | 13.13 | % | 833,216 | 725,878 | 14.79 | % | ||||
| Stockholders’ equity | 69,173 | 63,429 | 9.06 | % | 66,937 | 62,193 | 7.63 | % | ||||
| Interest earning assets | 906,409 | 799,604 | 13.36 | % | 862,500 | 758,439 | 13.72 | % | ||||
| Interest bearing liabilities | 718,714 | 636,901 | 12.85 | % | 682,089 | 608,680 | 12.06 | % | ||||
| Total assets | 962,006 | 854,729 | 12.55 | % | 920,474 | 805,120 | 14.33 | % | ||||
| Three months ending Dec 31, |
Year to date Dec 31, |
|||||||||||
| Financial Ratios: | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||
| Return on average assets | 0.77 | % | 0.79 | % | (0.02 | ) | 0.82 | % | 0.62 | % | 0.20 | |
| Return on average equity | 10.66 | % | 10.70 | % | (0.04 | ) | 11.34 | % | 8.01 | % | 3.33 | |
| Net interest margin | 2.98 | % | 3.42 | % | (0.44 | ) | 3.14 | % | 3.32 | % | (0.18 | ) |
| Efficiency ratio | 81.55 | % | 76.52 | % | 5.03 | 76.62 | % | 75.84 | % | 0.78 | ||
| Average equity to average assets | 7.19 | % | 7.42 | % | (0.23 | ) | 7.27 | % | 7.72 | % | (0.45 | ) |
| Three months ending Dec 31, |
Year to date Dec 31, |
|||||||||||||||
| Allowance for loan losses: | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
| Beginning balance | $ | 7,276 | $ | 6,966 | 4.45 | % | $ | 7,156 | $ | 4,829 | 48.19 | % | ||||
| Provision for (recovery of) loan losses | (500 | ) | 200 | -350.00 | % | (500 | ) | 2,548 | -119.62 | % | ||||||
| Charge-offs | (11 | ) | (52 | ) | -78.85 | % | (91 | ) | (448 | ) | -79.69 | % | ||||
| Recoveries | 150 | 42 | 257.14 | % | 350 | 227 | 54.19 | % | ||||||||
| Ending balance | 6,915 | 7,156 | -3.37 | % | 6,915 | 7,156 | -3.37 | % | ||||||||
| Nonperforming assets: | 2021 | 2020 | Change | 2020 | 2019 | Change | ||||||
| Total nonperforming loans | $ | 954 | $ | 2,064 | -53.78 | % | $ | 2,064 | $ | 1,301 | 58.65 | % |
| Other real estate owned | 761 | 1,105 | -31.13 | % | 1,105 | 2,339 | -52.76 | % | ||||
| Total nonperforming assets | 1,715 | 3,169 | -45.88 | % | 3,169 | 3,640 | -12.94 | % | ||||
| Troubled debt restructurings – (performing portion) | 372 | 392 | -5.10 | % | 392 | 410 | -4.39 | % | ||||
| Dec 31, | Dec 31, | |||||||||||
| Asset quality ratios: | 2021 | 2020 | Change | 2020 | 2019 | Change | ||||||
| Nonperforming loans to total loans | 0.16 | % | 0.34 | % | (0.18 | ) | 0.34 | % | 0.23 | % | 0.11 | |
| Allowance for loan losses to total loans | 1.19 | % | 1.17 | % | 0.01 | 1.17 | % | 0.84 | % | 0.34 | ||
| Allowance for loan losses to nonperforming loans | 724.84 | % | 346.71 | % | 378.14 | 346.71 | % | 371.18 | % | (24.47 | ) | |
